EUR/JPY Steady in a Range – Quick Update on Trading Signal
Arslan Butt • 1 min read
As anticipated, the financial markets are a bit muted as investors are shy to trade before the significant news of NFP. With that, EUR/JPY is one of the trading instruments stuck in a narrow trading range of 125.750 – 124.800.
The single currency Euro gained a bit of a bullish momentum after the French trade deficit narrowed. As per reports, trade deficit squeezed to EUR 4.0 billion in February 2019 from EUR 4.2 billion in the previous month versus market expectations of a EUR 4.7 billion cleft.
The demand for Japanese Yen remains weak as investors feel confident about the US-China trade deal. On the daily timeframe, the 50-period EMA is giving a hard time to the EUR/JPY, as it’s pushing the pair lower below 125.
The RSI is also holding above 50, supporting the bullish bias of investors. Most important of all, the Japanese cross is facing stiff resistance at 125.450, and the bullish breakout can extend the buying trend until 125.500. Alternatively, EUR/JPY can stay bearish below 125.400.
Key Trading Level: 124.78
EUR/JPY – Trading Plan
Traders, we have opened a buy signal to stay bullish above 125.400 with a stop loss below 125.07 and take profit around 125.77. It’s the best way to keep yourself safe from the USD pairs.